When an Alaska lender evaluates a borrower's creditworthiness, the 'Four Cs of Credit' include all EXCEPT:
Why Circumstances (reason for buying) Is Correct
Answer D: Circumstances (reason for buying)
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
People Also Study
Related Alaska Questions
- In Alaska, a borrower whose credit score drops between the time of loan application and closing may find that the lender:Finance
- A buyer in Alaska obtains an FHA loan. The minimum down payment required is:Finance
- An Alaska property sells for $350,000. The buyer makes a 20% down payment and finances the rest. What is the loan amount?Finance
- An Alaska property is sold at foreclosure for less than the outstanding loan balance. The difference the borrower may owe the lender is called:Finance
- A borrower in Alaska has a debt-to-income (DTI) ratio limit of 43%. Their gross monthly income is $6,500. What is the maximum total monthly debt payment allowed?Real Estate Math
- A buyer in Alaska makes an offer of $325,000 with 5% down. The lender requires a loan-to-value not exceeding 95%. What is the maximum loan amount?Real Estate Math
- A buyer in Alaska purchases a $420,000 home, making a 15% down payment. How much private mortgage insurance is required annually if the PMI rate is 0.75% of the loan amount?Real Estate Math
- A property sells for $350,000. The buyer makes a 20% down payment. What is the loan amount?Real Estate Math
Key Terms to Know
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More Alaska Real Estate Questions
1,400+ questions covering all exam topics. Start free — no signup required.
Take the Free Alaska Quiz →